Is Verra Mobility Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Verra Mobility Corp. has moved from expensive to very expensive, indicating a significant concern regarding its current market valuation. The company is considered overvalued based on its metrics, particularly with a P/E ratio of 29, a Price to Book Value of 12.97, and an EV to EBITDA ratio of 13.75. In comparison, peers such as Lyft, Inc. have a P/E of 52.72, while Vontier Corp. shows a more reasonable P/E of 15.89, highlighting the disparity in valuation within the industry.
Despite a strong ROE of 45.29% and a PEG ratio of 0.57 suggesting growth potential, the overall valuation metrics indicate that Verra Mobility Corp. is priced excessively high relative to its earnings and book value. Additionally, the company's stock has underperformed compared to the S&P 500 over the past year, with a return of -9.68% versus the index's 17.14%, reinforcing the view that it is currently overvalued.